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Suppose this new representative picks all steps that have equivalent likelihood within the all claims

Suppose this new representative picks all steps that have equivalent likelihood within the all claims

Profile step 3.5b suggests the value setting, , for it policy, toward discount award situation which have . Which really worth function are computed by the resolving the device regarding equations (step 3.10). Notice the bad opinions nearby the down line; these are the outcome of the large probability from showing up in edge of the newest grid there underneath the arbitrary plan. County A beneficial is the best county to be in significantly less than so it coverage, but their expected come back is actually below 10, its instant prize, as out-of A for your agent are delivered to , where the likelihood is to run on the edge of the brand new grid.